UNA PROFESSIONAL ACCOUNTING PREP PROGRAM

Transcription

1 UNA PROFESSIONAL ACCOUNTING PREP PROGRAM Course: AC 463P Financial Statement Auditing Professor: Keith T. Jones, PhD, CPA Professor of Accounting University of North Alabama TEXTBOOK: CPAexcel Auditing Materials, Efficient Learning Systems OBJECTIVES: The student will be able to: 1. Understand the role of auditing in business and society and the professional responsibilities of an auditor, with an emphasis upon U.S. generally accepted auditing standards. 2. Understand the risks auditors face in financial statement audits and how they manage those risks. 3. Identify management assertions embodied in financial statements and understand how auditing procedures relate to those assertions. 4. Identify factors that affect auditors judgments and decisions. 5. Assist in planning and performing an audit, and deciding on the appropriate type of audit report. CREDIT HOURS: 3 semester hours PREREQUISITES: AC 361P COURSE DELIVERY: This course is delivered online and you can proceed through the material at the pace that is most appropriate for you. Once you complete the application process and are given your login information for the course you will be able to access all course materials at The course outline that is shown below will be available online and will guide you through the course. The study text materials, lesson videos, and homework questions are all included online. For each lesson assigned, it is recommended that you first watch the video lecture to become familiar with the area. You should then read the study text material and answer the questions included in the study text. Your last step is to work through all of the homework questions provided in the lesson. Some of the homework is included in your Participation grade and some is not, as follows: Proficiency Questions Not Included in Participation Exam Questions Included in Participation Task Based Simulations Included in Participation Not all lessons have Task Based Simulations. You can rework homework Exam Questions and Task Based Simulations that you missed to raise your Participation grade if you desire. Note that detailed solutions are provided to the multiple choice questions,

2 but you should answer each question on your own before checking the solution. The best way to learn accounting or auditing is to do the work yourself, not just read questions/problems and the related solutions. Quizzes and exams should be taken at the time shown in your lesson outline. Note that quizzes and exams do have time limits. Quizzes and exams can be taken only once. If you have any questions as you complete the course please me. COURSE ACCESS AND ENROLLMENT ISSUES: 1. Once you have completed all application materials and paid the course fee you will be given access to the course material. At this time you can begin reviewing the course materials and completing the course requirements. However, this does not mean that you are enrolled at UNA. 2. UNA processes applications for this course once each month. Once your application has been processed and you are officially admitted as a student at UNA and enrolled in this course, you will receive an from the professor welcoming you to the course. Until that is received you are not officially enrolled at UNA even though you will already have access to the course material. 3. If your application is not accepted at UNA you will receive a refund of your course fee. This is an unusual occurrence and usually happens only when application materials are incomplete or prerequisites have not been satisfied. 4. The University of North Alabama allows students two semesters to complete the requirements for a specific course, subject to the approval of the instructor. If you do not complete the course in the semester of your initial enrollment, you will receive a grade of Incomplete and will be able to complete the course in the following semester. If you do not complete the course by the end of the second semester of enrollment, then you automatically receive a failing grade for the course. 5. The content covered in this course is very similar to the content covered in the traditional classroom courses offered at UNA. We are not aware of any instance where UNA accounting courses were not accepted by state licensing boards in determining if the requirements have been met to sit for the CPA exam. However, we advise you to be familiar with the requirements for the state where you plan to sit for the CPA exam to insure that the courses you complete are appropriate. These requirements can vary substantially across states (see for a listing of State Boards of Accountancy websites).

3 COURSE ASSESSMENTS AND FINAL GRADE: The following are the general policies for this class. Deviations may be necessary. 1. There will be four exams and eight quizzes. 2. All exams and quizzes will be given on-line and will focus on conceptual understanding. Students will be allowed no more than 75 minutes for each exam and no more than 20 minutes for each quiz. 3. All exams and quizzes will be open book and notes, but each student must complete the tests without assistance from other individuals. 4. DO NOT CHEAT ON EXAMS OR QUIZZES. Anyone who cheats will receive an F for the course. 5. Final grades are determined as follows: Points HOMEWORK 50 EXAMS EXAM EXAM EXAM EXAM Total 400 QUIZZES QUIZZES 10 each Total 530 ==== Grades will be assigned as follows: 90% or above A 80% to 90% B 70% to 80% C 60% to 70% D Below 60% F Your grade will be the percentage of your total points earned to 530 points.

4 TRANSCRIPT REQUESTS Transcripts are $5.00 per copy and are usually processed within 2 business days. You may request this at any time by completing the Transcript Request form and faxing it to , or mail to: University of North Alabama UNA Box 5044 Florence, AL Note that if you submit this form BEFORE the academic semester ends for your official enrollment, check the box indicating for UNA to not mail the transcript until grades for the current semester are finalized and posted to your transcript.

5 COURSE OUTLINE AC 463P Financial Statement Auditing Welcome and Introduction Simulations Financial Statement Audits Accounting vs. Auditing GAAS and Principles Professional Standards Quality Control Standards (SQCS) Overview of Audit Process Overview of Auditor's Report Different Types of Engagements QUIZ 1 Planning Activities "Pre-Engagement" Planning Issues Planning and Supervision Materiality Audit Risk Analytical Procedures Detecting Fraud Fraud: Evaluation and Communication Detecting Illegal Acts Using the Work of a "Specialist" Required Communications with those Charged with Governance Internal Control - Concepts & Standards Internal Control Concepts 1 Internal Control Concepts 2 Internal Control Standards 1 Internal Control Standards 2 Internal Control - Required Communications Using the Work of an Internal Audit Function QUIZ 2 EXAM 1 Internal Control: Transaction Cycles Specific Transaction Cycles Revenue/Receipts - Sales Revenue/Receipts - Cash Expenditures/Disbursements Payroll Cycle Miscellaneous Cycles QUIZ 3 Audit Evidence: Concepts & Standards

6 Overview of Substantive Procedures Nature of Evidence 1 Nature of Evidence 2 Evaluation of Misstatements Identified During the Audit Audit Documentation Confirmation Accounting Estimates Fair Value Estimates Lawyer's Letters Management Representations Letters Related Party Issues Subsequent Events and Related Issues Going Concern Issues QUIZ 4 EXAM 2 Audit Evidence: Specific Audit Areas Introduction to Auditing Individual Areas Cash Accounts Receivable Inventory Investments in Securities and Derivative Instruments Fixed Assets Current Liabilities Long-term Liabilities Stockholders' Equity Payroll Audit Sampling Introduction to Sampling Attributes Sampling Variables Sampling Example Problems Difference Estimation Problem Difference Estimation Solution Ratio Estimation Problem Ratio Estimation Solution MPU Estimation Problem MPU Estimation Solution PPS Sampling Problem PPS Sampling Solution QUIZ 5 IT (Computer) Auditing

7 IT Controls - General Controls IT Controls - Application Controls IT Evidence - Gathering Procedures Other IT Considerations Audit Reports Introduction to Audit Reports Audits of Group Financial Statements "Emphasis-of-Matter" and "Other Matter" Paragraphs Qualified for Scope Limitation Qualified for Misstatement Adverse Opinion Disclaimer of Opinion Consistency of Financial Statements Opening Balances - Initial Audits Other Information Along with Financial Statements Supplementary Information Related to Financial Statements Required Supplementary Information Alert to Restrict Report Financial Statements Using Another Country's Framework Reporting on Summary Financial Statements Interim Financial Information Sample Reports Unmodified Opinion (Reference to Legal Requirements) Unmodified Opinion (No Reference to Legal Requirements) Unmodified Opinion (Sentence-by-Sentence) Unmodified in Current Year, Balance Sheet in Prior Year Unmodified in Prior Year, Qualified in Current Year Qualified for Scope Qualified for Material Misstatement Qualified for Inadequate Disclosure Adverse Opinion Disclaimer of Opinion for Scope Unmodified on B/S, Disclaimer on I/S and Cash Flows Emphasis-of-Matter Paragraph Other-Matter Paragraph Reference to Component Auditor F/S Prepared on Cash Basis F/S Prepared on Regulatory Basis (for General Use) Single Financial Statement Specific Element (Special Purpose Framework)

8 Incomplete Presentation Application of Accounting Principles (Second Opinion) Report on Summary Financial Statements Review Report on Interim Financial Statements Other Types of Reports Reports on Application of Requirements of Framework F/S with Special Purpose Frameworks Audits of Single F/S and Specific Elements, Accounts, or Items Reporting on Compliance with Requirements in a F/S Audit Service Organizations - User Auditors Service Organizations - Service Auditors Comfort Letters Government Auditing Standards Compliance Audits SSARSs - Framework SSARSs - Compilations SSARSs - Reviews SSARSs - Other Topics Sample Reports Financial Statements Prepared on the Cash Basis Profit Participation Sample Review Report on Financial Statements Sample Compilation Report on Financial Statements Separate Report on Compliance (No Instances of Noncompliance) Separate Report on Compliance (With Noncompliance Identified) Combined Report on Audited Financial Statements and Compliance Issues QUIZ 6 EXAM 3 Other Professional Services Attestation Standards Financial Forecasts and Projections Pro Forma Financial Information Compliance Attestation Reporting on Internal Control in an Integrated Audit Management's Discussion and Analysis (MD&A) Assurance Services Sample Reports Examination of Forecast AUP of Forecast Compilation of Forecast

9 Examination of Pro Forma Review of Pro Forma Examination for Compliance AUP for Compliance Sample Combined Report on I/C and F/S Sample Separate Report on I/C (Mgt's Assertion) Examination of MD&A Review of MD&A Sarbanes-Oxley Act of 2002 and the PCAOB PCAOB Responsibilities Auditing Standard No. 1 Auditing Standard No. 3 Auditing Standard No. 4 Auditing Standard No. 5 Auditing Standard No. 6 Auditing Standard No. 7 Auditing Standard 8-15 Auditing Standard No. 16 QUIZ 7 International Auditing Issues IFAC and International Standards on Auditing Final Thoughts Professional Responsibility Code of Professional Conduct Independence Introduction to Independence Who Must Be Independent? Financial Interests Employment Relationships Non-Audit Services Family Relationships Rule Integrity & Objectivity General Standards and Accounting Principles Rule Accounting Principles and Interpretations Responsibilities to Clients Rule Acts Discreditable Rule Advertising Rule Commissions and Referral Fees Rule Name Responsibilities in Consulting Services Securities andd Exchange Commission (SEC)

10 Sarbanes-Oxley and the PCAOB Government Accounting Office (GAO) Department of Labor (DOL) International Federation of Accountants (IFAC) QUIZ 8 EXAM 4